Last weekend I booked a spontaneous trip to Rome with my sons. It was fantastic to get away and easy to organize because I’ve gotten into the habit of booking everything – hotels, taxis,etc – via my smart phone. When I travel these days, I expect personalised, simple and fast service, and I am rarely disappointed.
Compare this level of convenience to insurance. While the tourism industry is at the top of its game when it comes to simplifying customer journeys, insurance is lagging behind when it comes to digital innovation.
But what if buying insurance could be as simple as booking an Uber? People today expect more from insurance in order to make their lives easier, with personalised products that allow them to live healthier and safer lives.
Here’s how we’re making this happen.
Technology is transforming our lives
Technology is transforming the relationship between the insurance company and you. It will make buying insurance pain-free, giving you coverage not only upon your death, but also encouraging you to live a healthier life.
We are creating attractive products that improve people’s lives, including telematics-based motor insurance, fitness tracker-based health insurance and digital assistants that improve the customer journey. These types of innovations positively influence consumer behaviour, encouraging you to drive safer, smoke less and workout more.
We’re also helping insurance companies improve their services, for example with digital assistants such as EVA, which will become the new digital face of brands. In the life and health sector, insurers are choosing to partner with Swiss Re’s iptiQ, a totally digital platform that allows insurers to provide bespoke insurance in less than 5 minutes. Thanks to Magnum, we are able to perform automated underwriting for approximately 75% of our applicants.
Digitisation will improve efficiency and access
Cryptography, smart contracts and distributed ledger technology are revolutionizing ways that we can help tackle inefficient processes in our industry. Commercial entities can track all interactions securely on a smart-contracts resident on a blockchain without having to build different systems.
We are already doing this in Singapore for example, where we offer a LumenLab diabetes app/Vitana product, which is the world’s first automated insurance solution that utilizes Blockchain technology and allows pregnant women affected with gestational diabetes to receive cover. Vitana securely connects to customers’ electronic medical records via their mobile in order to issue a policy within minutes, which means that you receive an automatic payout upon diagnosis without the need to make a claim.
Another example of how Swiss Re is making your purchase journey more efficient is with parametric flight delay compensation, which gives insurers a fully automated solution where passengers do not need to claim losses. You simply receive the pre-determined payout upon delayed landing, which can lead to increased customer satisfaction and loyalty.
Technology increases affordability
Most importantly, we will be able to insure more people by using technology to close the global protection gap. Technology is making insurance cheaper and allows even underprivileged people to receive coverage. Digitisation will also lead to savings in all key areas for insurers, including claims settlement, acquisition and administration.
Digital tools such as social media and mobiles will also improve awareness about insurance. An increase in these two factors – affordability and level of awareness – will drive higher penetration rates.
At Swiss Re, we want to close the protection gap in order to make the world more resilient, and technology is critical to improving the attractiveness, affordability and efficiency of our products. Insurance may never be an impulse buy, but I personally envision a future not too far away where you can purchase almost any type of insurance as easy as you can book a hotel.
Watch out for my next blog, which I will publish from the #wef19 in Davos!